O'Reilly Automotive, Inc. (Nasdaq: ORLY), a leader in the automotive aftermarket industry, announced its fourth quarter and full-year financial results for the year ended December 31, 2024. This press release reveals a strong performance marked by record revenues and the continuation of impressive comparable store sales growth.

1. Fourth Quarter Financial Highlights

O'Reilly Automotive's CEO, Brad Beckham, expressed satisfaction with the company's robust fourth quarter, noting a 4.4% growth in comparable store sales. This growth was driven by strong performances from both professional and do-it-yourself (DIY) customer segments. The fourth quarter results include:

Sales: Increased by $264 million, or 7%, to $4.10 billion, compared to $3.83 billion during the same period in 2023.

Gross Profit: Rose 7% to $2.10 billion, maintaining a margin of 51.3% of sales.

SG&A Expenses: Increased 9% to $1.36 billion, accounting for 33.3% of sales. Notably, this included a $35 million charge for adjusting self-insurance liabilities related to historic auto liability claims.

Operating Income: Grew by 3% to $739 million, representing 18.0% of sales.

Net Income: Slightly decreased by $1 million to $551 million, or 13.5% of sales.

Diluted Earnings Per Share (EPS): Increased 3% to $9.50, despite a self-insurance reserve adjustment impacting net income. The adjustment affected net income and diluted EPS by $27 million and $0.46, respectively.

2. Full-Year Financial Performance

The full-year results reflected consistent growth despite challenging market conditions. Highlights include:

Comparable Store Sales Growth: Reached 2.9%, at the high end of the revised guidance range of 2% to 3%.

Sales: Increased by $896 million, or 6%, to $16.71 billion, up from $15.81 billion in 2023.

Gross Profit: Increased 6% to $8.55 billion, maintaining a margin of 51.2% of sales.

SG&A Expenses: Rose by 8% to $5.30 billion, representing 31.7% of sales.

Operating Income: Increased 2% to $3.25 billion, representing 19.5% of sales.

Net Income: Grew by 2% to $2.39 billion, or 14.3% of sales.

Diluted EPS: Increased 6% to $40.66, compared to $38.47 in 2023.

3. Expansion and Future Outlook

In 2024, O'Reilly successfully opened 198 new stores, achieving its expansion goal while also relocating its Atlanta distribution center to a modern facility. Beckham emphasized the team's commitment to customer service and operational execution, which he believes is driving market share gains.

For 2025, O'Reilly Automotive has set ambitious guidance, including:

Net New Store Openings: Targeting 200 to 210.

Comparable Store Sales Growth: Aiming for 2.0% to 4.0%.

Total Revenue: Projected between $17.4 billion and $17.7 billion.

Diluted EPS Guidance: Expected to range from $42.60 to $43.10.

4. Share Repurchase Program

During the fourth quarter, O'Reilly repurchased 0.4 million shares at an average price of $1,207.43, totaling $472 million. For the entire year, the company bought back 1.9 million shares for $2.08 billion, maintaining a robust capital return strategy with approximately $2.31 billion remaining under its current repurchase authorization.

5. Conference Call and Investor Information

O'Reilly will host a conference call on February 6, 2025, at 10:00 a.m. Central Time to discuss these results and future expectations. Investors can listen live on the company’s website.

6. Conclusion

O'Reilly Automotive's fourth quarter and full-year results for 2024 underscore its resilience and commitment to growth in the automotive aftermarket sector. With steady comparable store sales growth, strategic expansions, and a robust financial outlook for 2025, the company continues to position itself as a formidable player in the industry. As it embarks on another year of growth, O'Reilly remains focused on enhancing customer service and operational excellence, setting a strong foundation for future success.

Original press release